A key aspect of the strategy is a scientific and mathematical approach to investment. We believe that the behaviour of the international security markets is not 100% random and that there are statistically predictable movements, which can be identified and acted upon. Central to identifying these movements is rigorous research. The Investment manager has an established an extensive database of prices for the major international securities markets and has tested its trading theories using proprietary technology and statistical and mathematical research processes.

The trading strategy adopted by the Investment Manager is dynamic and involves the structuring of investments in futures and options strategies in order to maximize yields. Primarily, the structured trading strategies will have expiry dates of approximately one month, however where opportunities arise, the Investment Manager may make short-term structured investments with expiry scenarios of days or possibly hours.

The Investment Manager adopts an extremely technical and analytical approach to determining the investment strategies, which are adopted. In particular, the Investment Manager utilizes all the technical chart analysis theories, both on price and time and excel based software applications. The study of individual options involves two processes, the first requires the verification of the fundamental greeks parameters and the second is directed to analyse the differences between the 'fair price' in the market, which is calculated by the Investment Managers propriety software, and the price offered by the market-makers.

The analysis of the implied volatility of options is of particular importance. In periods of high volatility, (such as occurred in October 2002 and March 2003), the Fund will tend to only be a 'writer' of options. At such times, the positions available in the market will always be short on volatility, therefore the strategy will seldom be a buyer of options. Conversely, during periods of low volatility, (such as occurred in during all the 2004), the Fund will attempt to adopt trading strategies in which it is both a buyer and seller of options, in order to exploit both the time decay and the possible explosion of the volatility.

The adoption of this strategy could result in the Fund being short on volatility in a given period, however long on volatility at a future time, thruogh, for example, future hedging and long put strategies.

The overall trading strategy is not static but dynamic and requires constant monitoring and analysis in order to react to sudden changes in market conditions.

The Investment Manager assures that each of the structured trading strategies, which are entered into, will utilise between 25% and 50% of the assets of the Fund as collateral for its positions in the market. There may be isolated cases when this limit is exceeded, however the Investment Manager will never commit more than 75% of the assets of the Fund. The Investment Manager will utilise proprietary software to constantly monitor and verify that margin/collateral levels do not exceed these limits.

Under the Investment Management Agreement between the Fund and the Investment Manager, the Investment Manager will make all decisions and effect the purchase and disposal of securities on behalf of the Fund, acting with full discretion but in accordance with the Fund's investment objectives and policies.

The Investment Manager may select and appoint trading advisors to invest the Fund's assets. Trading Advisors chosen by the Investment Manager will have proven success records in a wide variety of market conditions.